EPFO Current Interest Rate on PF Deposits Lowered to 8.55 Per Cent! Here is The List of EPF Interest Rates From 1952
As per statistics available, the EPFO interest rate started with 3% in the year 1952 and went highest to 12% in the following years. Interest rates from 1989-90 to 1999-2000 (10 years) was the highest at 12%.
New Delhi, February 22: Retirement fund body Employees' Provident Fund Organisation (EPFO) on Wednesday lowered the interest rate on PF deposits for the year 2017-18 for its nearly 5 crore subscribers. The rate has been scaled down to 8.55 per cent, a drop from 8.65 per cent in 2016-17. It must be noted that for 2016-17, EPFO had paid an interest rate of 8.65 per cent to its subscribers, lower than 8.8 per cent offered in 2015-16. This is the second year in a row that EPFO has lowered rates.
As per reports, the EPFO had sold a portion of its investments in the exchange-traded funds (ETF) worth Rs 2,886 crore earlier this month to maintain the 8.65 percent interest this fiscal. As per PTI reports, the EPFO has been investing in ETFs since August 2015 and it has so far not monetised the ETF investments. The EPFO has invested around Rs 44,000 crore in the ETFs till date.
As per statistics available, the EPFO interest rate started with 3% in the year 1952 and went highest to 12% in the following years. Interest rates from 1989-90 to 1999-2000 (10 years) was the highest at 12%. In the financial year 2000-01, the interest rate was lowered for the first time to 11%. The interest rate was then lowered to 8.50% in the year 2005-06 while it went down to 8.25% in the year 2011-12.
Take a look at the EPF interest rates from 1952 to 2017:
| Financial Year | Interest Rate (%) |
| 1952-53 | 3.00% |
| 1953-54 | 3.00% |
| 1954-55 | 3.00% |
| 1955-56 | 3.50% |
| 1956-57 | 3.50% |
| 1957-58 | 3.75% |
| 1958-59 | 3.75% |
| 1959-60 | 3.75% |
| 1960-61 | 3.75% |
| 1961-62 | 3.75% |
| 1962-63 | 3.75% |
| 1963-64 | 4.00% |
| 1964-65 | 4.25% |
| 1965-66 | 4.50% |
| 1966-67 | 4.75% |
| 1967-68 | 5.00% |
| 1968-69 | 5.25% |
| 1969-70 | 5.50% |
| 1970-71 | 5.70% |
| 1971-72 | 5.80% |
| 1972-73 | 6.00% |
| 1973-74 | 6.00% |
| 1974-75 | 6.50% |
| 1975-76 | 7.00% |
| 1976-77 | 7.50% |
| 1977-78 | 8.00% |
| 1978-79 | 8.25% |
| 1979-80 | 8.25% |
| 1981-82 | 8.50% |
| 1982-83 | 8.75% |
| 1983-84 | 9.15% |
| 1984-85 | 9.90% |
| 1985-86 | 10.15% |
| 1986-87 | 11% |
| 1987-88 | 11.50% |
| 1988-89 | 11.80% |
| 1989-90 | 12% |
| 1990-91 | 12% |
| 1991-92 | 12% |
| 1992-93 | 12% |
| 1993-94 | 12% |
| 1994-95 | 12% |
| 1995-96 | 12% |
| 1996-97 | 12% |
| 1997-98 | 12% |
| 1998-99 | 12% |
| 1999-2000 | 12% |
| 2000-01 | 11.00% |
| 2001-02 | 9.50% |
| 2002-03 | 9.50% |
| 2003-04 | 9.50% |
| 2004-05 | 9.50% |
| 2005-06 | 8.50% |
| 2006-07 | 8.50% |
| 2007-08 | 8.50% |
| 2008-09 | 8.50% |
| 2009-10 | 8.50% |
| 2010-11 | 9.50% |
| 2011-12 | 8.25% |
| 2012-13 | 8.50% |
| 2013-2014 | 8.75% |
| 2014-2015 | 8.75% |
| 2015-16 | 8.80% |
| 2016-17 | 8.65% |
| 2017-18 | 8.55% |
The EPF interest rate is decided by the central government with the consultation of Central Board of trustees. In the past several decades, the interest rate has ranged from 8-12 % of the balances maintained in the fund.
Here is the graphical representation of the EPF interest rates from 1952-2017
It must be noted that the EPF accounting year starts from March and ends the following year in February but interest is credited to employees on April every year. As per reports, the interest is calculated on a monthly basis for the period of investment during the year at the rate of interest specified by the government. This interest is then added to the investment in the EPF of the account holder.
The EPFO manages over 5 crore accounts, with a total corpus amounting to nearly Rs 10 lakh crores. An employee, along with his employer, set aside 12 percent of the salary each towards the PF account. The employer and employee typically contribute 12 per cent of basic salary towards employee provident fund (EPF). It must be noted than an employee's 12 per cent contribution goes towards the EPF kitty, while 8.33 per cent out of the total 12 per cent of the employer's contribution is invested in EPS or pension scheme. The balance 3.67 per cent is then invested in EPF.
(The above story first appeared on LatestLY on Feb 22, 2018 12:57 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).